USDCAD moves to a new intraday low
The USDCAD ticks to a new low less than 24 hours until the BOC rate decision at 10 AM ET tomorrow. The central bank is expected to keep rates unchanged with a 10% chance of a 25 basis point hike.
For most of the North American session, the price has been able to stay below the 100/200 hour MAs (blue and green lines). Those MAs have crossed today with the 100 hour MA (blue Line) at 1.34929 moving above the 200 hour MA (green line) at 1.34860. Buyers tried to extend above the lower 200 hour MA over last six so trading hours, but sellers kept a lid on the pair. The last few hours has seen the sellers overwhelm the buyers and push the price lower – and to new session lows.
What now?
The 1.34569 is the next target followed by the lows from April 5 at 1.34251. Below that and the low from last week at 1.3405 and the rising 200 day MA at 1.3390 will be targeted.
Overall, since March 30 (nine trading days), the price has been moving down, up and now back down again. The high price was near 1.3563. The low price was near 1.3405. The 158 PIP trading ranges fairly narrow for nearly 2 weeks of trading. Yesterday, the buyers had more control above the two moving averages, and also extend above the 100 day moving average (at 1.35258). However, sellers came in against the swing highs from March 30 and March 31 (see red numbered circle 5), and restarted the tilt more to the downside.
Now with the price back below the hourly moving averages, focus returns to the lower level targets as long as the price remains below the moving averages.